Turnover is falling this year at two ground engineering firms owned by a subsidiary of French multinational Vinci.
Geotechnical specialist Bachy Soletanche and its subsidiary, piling specialist Roger Bullivant, are both on course for reduced activity levels in 2024 – according to accounts published on Monday (14 October).
Bachy Soletanche said that decreasing activity on two of its biggest jobs is behind the decline.
The Lancashire-headquartered company is part of the Costain Vinci Bachy joint venture on Thames Tideway, and a partner in two HS2 joint ventures alongside Balfour Beatty Ground Engineering, where work includes the Old Oak Common station build (pictured).
Accounts for the 12 months to 31 December 2023 show its turnover increased to £250.2m from £221.6m over the previous year.
Pre-tax profit rose to £15.7m from £8m in 2022.
Bachy Soletanche group finance director Graham Trafford said the 2023 increase was “mainly driven by a combined activity portfolio of Thames Tideway project, core business activity for local regional customers and the works being carried out on two significant contracts on the High Speed 2 Rail (HS2) project in the year”.
However, he added that with activity levels falling on both projects in 2024, the group is forecasting a decrease in turnover.
Earlier this week, the first four valves at the Thames Tideway were opened for the first time, after eight years of construction on the super-sewer megaproject. The rest are due to come online in the coming months, as the facility reaches full operating capacity.
While progress on the first parts of HS2 has been made, the future shape of the rail scheme is still uncertain, with a lack of clarity around the funding of its construction from Old Oak Common to Euston, and national newspaper reports last week that a less ambitious version of the leg north of Birmingham could be on the table.
Earlier this year, Construction News visited Old Oak Common to learn about the work carried out, including the complicated piling work carried out by SB3, Balfour Beatty and Bachy Soletanche’s joint venture.
Meanwhile Roger Bullivant blamed the downturn in its key market, residential housing, during 2023 for its turnover falling from £97.4m to £87.2m.
Pre-tax profit slumped to £2.8m from £7.5m, newly released accounts for the year to 31 December 2023 show.
Managing director David Clement said the board is confident of a “good performance” in 2024 but that “deteriorating economic conditions and increased interest rates” would likely see its revenue decline further.
“The company continues to look at ways to increase its profitability through increased market share, access to new markets, improved site productivity and long-term relationships with key clients and partners,” he added.
Clement said that the contractor sees work in non-residential sectors as emerging and important targets in future.
Projects it delivered in the year included at the regeneration of Darlington’s Rail Heritage Quarter where it helped lay foundations for a new 4D virtual reality motion ride, at what is hoped can be Darlington’s Disneyland. CN visited the project in February for an exclusive project report.
